Control of Receivables
1) Days Sales Outstanding (DSO)
DSO= Debtors + Bills Receivable days
Average Daily Sales:
2) Ageing Schedule
Debtors are classified into different age brackets.
3) ABC Analysis
Classification of Debtors into A Category, B Category and C Category
A Category—Small no. of debtors but of large values—Highest Control
B Category— Moderate no. of debtors and of moderate values—
– Moderate Control
C Category— Large no. of debtors but of small values
– Less Control
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